JANA Partners Completely Exits PetSmart ~ market folly

Tuesday, February 10, 2015

JANA Partners Completely Exits PetSmart

After going activist on PetSmart (PETM), Barry Rosenstein's hedge fund JANA Partners got the company sold and has been trimming its exposure to the stock since.  Now, in their latest 13D filing with the SEC, we see that JANA has completely exited PetSmart shares.  The filing was made due to activity on February 5th.

As the stock has effectively traded sideways as a risk arbitrage play, one possible explanation is that JANA didn't want to sit around and wait to capture a tiny spread and instead saw more attractive uses for that capital.

PetSmart is set to be acquired by BC Partners in an $8.7 billion deal.

Per Google Finance, PetSmart "supplies products, services and solutions for the lifetime needs of pets. The Company operates a website for pet supplies, foods and different animal needs. The Company's stores also feature pet styling salons that offer pet grooming services, from full-service styling to baths, toenail trimming and teeth cleaning."

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